US S&P Global Composite PMI: 56.0 (est 54.0; prev 54.5)
— Manufacturing PMI Aug P: 53.2 (est 53.9; prev 53.9)
— Services PMI: 56.8 (est 54.0; prev 54.6)
The August US flash Composite PMI Output Index surged +1.5pts to a 52-month high of 56.0, the fastest growth since April 2022 and a notable beat vs. the 54.0 estimate, marking a second successive month of sharp acceleration. However the leadership continues to shift, with services now in the driver’s seat as manufacturing eases for a second month due to “reduced safety stock building and supply delays.”
Services jumped +2.2pts to 56.8 — a 20-month high (the highest since December 2024) and a big beat vs. the 54.0 estimate — as it “revived from the sluggish pace reported in the second quarter,” while manufacturing edged down -0.7pts to 53.2 — a 5-month low and a miss vs. the 53.9 estimate , although still “remaining among the highest readings seen over the past four years.”
Employment jumped to the highest since January 2025 and second highest in over four years, led by services but with manufacturing also picking up, as “employers gaining in confidence as concerns fade over the negative economic impacts of tariffs and the conflict in the Middle East.” Sentiment also improved to a 9-month high.
Prices meanwhile moderated on both the input and output side “although both remained elevated by historical standards.” Input costs rose at the slowest pace since February (the start of the war in the Middle East), while selling prices grew at the slowest pace since last November. Delivery times though remained among the worst in four years.
Sentiment improved for a third straight month to a 9-month high.
“US business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August. The survey data for the third quarter are currently pointing to annualized growth approaching 3.0%, up solidly from the 1.5% pace seen in the second quarter.”
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